Zurich Cantonal Bank (ZKB), Switzerland’s fourth-largest bank, has entered the cryptocurrency market, offering trading and custody services for Bitcoin and Ethereum.
ZKB’s new service, part of its digital platform, is designed to cater to both retail and institutional clients.
By offering direct trading and secure custody of Bitcoin and Ethereum through its e-banking and mobile banking platforms, ZKB aims to capitalize on the increasing demand for cryptocurrency solutions within Switzerland’s well-established financial ecosystem.
In collaboration with Crypto Finance AG, a subsidiary of Deutsche Börse Group, ZKB has integrated cryptocurrency transactions into its existing digital banking infrastructure.
No need for separate wallets
Clients can now trade and store cryptocurrencies without the need for separate wallets or private key management, as ZKB will handle all aspects of custody and transaction security.
Moreover, ZKB’s crypto services are not limited to its customers.
The bank has developed a business-to-business (B2B) solution that allows other Swiss banks to offer similar crypto trading and custody services to their clients.
Thurgauer Kantonalbank is the first partner to adopt this solution, broadening access to cryptocurrencies across Switzerland’s financial landscape.
ZKB’s foray into the cryptocurrency space builds on its history of digital innovation.
In 2021, the bank participated in issuing the world’s first digital bond on the SIX Digital Exchange, demonstrating its commitment to blockchain technology.
In 2023, ZKB served as a joint lead manager in a Swiss National Bank pilot project for issuing digital bonds with central bank digital currency.
Adoption of digital assets by Swiss banks
The launch of ZKB’s crypto services comes at a time of widespread adoption of digital assets by Swiss financial institutions.
For instance, in June 2024, Sygnum, a Zurich-based crypto-friendly bank, expanded its B2B services to over 20 entities, including PostFinance, ZugerKB, and LuzernerKB.
This expansion has enabled a significant portion of the Swiss population to access cryptocurrency markets, highlighting the growing integration of digital assets into the Swiss banking sector.
ZKB’s entry into the crypto market represents a strategic response to the increasing demand for digital assets.
By providing a secure and accessible platform for both individual and institutional clients, ZKB is well-positioned to capture a substantial share of the expanding digital asset market.
As Switzerland continues to lead in financial innovation, the move by ZKB to offer crypto trading and custody services signifies the ongoing evolution of the Swiss financial sector toward embracing digital assets.
As more banks, like Thurgauer Kantonalbank and Sygnum, follow suit, the Swiss crypto market is poised for further growth, solidifying its position as a global leader in digital finance.
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